tv Your World With Neil Cavuto FOX News April 5, 2012 4:00pm-5:00pm EDT
junket. now more junk. under government agency charged with saving tax dollars, now accuses of charging up a storm. and for a president up for re-election, charging into a major scandal, as well. welcome, everyone, i am neil cavuto, do you remember this? >> you cannot go take a trip to las vegas or go down to the super bowl on the taxpayers' dime. there has to be accountability and responsibility and i intend to impose that as president of the united states. >>neil: well, apparently you can go on the taxpayers dime and you can actually go first-class if you are in the general services administration, after having a lavish conference to las vegas including a clown, and special coins, now word of another program called "hats off," rewarding employees with
electronic goodies like ipods and gift cars -- cards for go work. they are an independent agency but the administrator was appointed by the president. the mill fallout in a moment. the far-flung fallout right now. >>reporter: the very latest on this, two house committees are investigating wasteful spending by the general services administration and this is following an inspector general's report criticizing a lavish october in october 2010 in las vegas and the house transportation committee panel has now scheduled a hearing that will take place april 19, to look at the spending habits at the agency in charge of the federal government's re. the reform committee wants more information from the inspector general and want dozen know if he is aware of disciplinary
action taken against employees over the land or execution of the conference before the inspector general's report was issued this week. video featuring federal employees joking about never being under investigation was featured and released by representative issa today and the white house accepted the chief martha johnson's resignation after she dismissed two deputies and suspended other career employees over the conference that cost $820,000. the house panel will hear from johnson and others. that hearing will be taking place, neil, april 19. >>neil: all right, sandra, a summer bummer for the president with the investigation from this on the gsa so solyndra, and high gas prices and all of this stealing the president's thunder.
>>guest: great to be here, thank for having me. >>neil: this goes on and on. >>guest: particularly the energy issue, the keystone xl pipeline, the rising gas prices are tough issues to get over. right new he has the benefit of the republican nomination dominating the news but in the summer when gas prices continue to rise it will be were more difficult to runaway from the headlines. >>neil: the gsa smacks of hypocrisy you would think necessity would catch reading the speeches lambasting corporate america and fat cat c.e.o.'s about not doing this kind of stuff, this is how they waste money and you could make the argument that a lot of the companies were wasting their own money and the case of those bailed out by the government, they were returning the money, and, then wasting money anew. and that is your gig. but, here, it is government agencies. >>guest: absolutely. it is very difficult for a voter
to see right now what we have seen, gift cars and little ipod towns being handed out to federal employees, that is hard for a vote tore see. >>neil: rewards for what? more than just showing up for work, or saving money? i could almost see it if there was a quid pro quo saving money, you got your budget under control but there wasn't, there was no quid pro quo? >>guest: i don't know the details of this program. the rewards of the conference in las vegas with clouds and the coin, those do not feed well to voters. they do not want to see that. it was in las vegas and the president used this as an example of waste in a talking point when officials go out there. >>neil: government is unwieldy best but what never changes is
the behavior. and it comes at a time when there is an argument we have to give the government more money. does this hurt that argument? for what? for this? >>guest: it does make it more difficult especially on capitol hill without are talking about the incredible budget cuts and in many cases very necessary budget cuts. it is hard to make the arguments on both sides of what should go when things are being spent on the topics we mentioned on the items. it makes it more difficult. >>neil: how much does this boomerang on the president? you have mentioned we have reported this sort of stuff happens in every administration. not long ago we had the $10,000 hammers and that stuff. i guess what makes it more galling is it speaks of hypocrisy. you say there is behavior you will not tolerate but this is common in government agencies.
>>guest: it happens in washington, you are right, we get reports there is another report about $500 muffins or some kind of conference but it is a weak point for this president because he ran on a platform of change, i'm a washington outsider. he did not say he would clean up washington. >>neil: but he did not make fun of it and there is a skit the house committee got investigating this, that speaks of all the problems here. this is from this very group, the skit they put on if las vegas. take a look. ♪ top hat award ♪ love to the nation ♪ i will never be under investigation ♪ >>neil: that is the gsa. >>guest: did they make that video on the government clock. everyone jokes at their job sometimes. but --. >>neil: we never do.
never. >>guest: i can say i have moments of fun in my job every day but to have that leak out when you are a government official, this will now be part of a hearing. >>neil: we love their hearings. okay, thank you very much. good to see you in the flesh. to the campaign trail, a new poll that puts romney five points ahead of rick santorum. in the former senator's own home state. of person. santorum is taking a four-day break as governor romney looks for the knock out punch holding two events in pennsylvania today. and former presidential candidate pawlenty says it is time for him to let go. i suspect, governor, if the polls keep locking like this he will let go. he will let go. what do you say? >>guest: well, it is pennsylvania. and, naturally, we on the romney campaign and most would expect rick santorum to win his home state. the polls bounce around a little
bit. what you highlight is promising but we still expect rick santorum to when his home state. to he country that is a pretty big signal about the state of his campaign. but it is time more broadly for him to get real. he is not going to be the republican nominee. romney is. and by continuing his campaign if the manner that he is, he is delaying the day where the conservative movement, the republican party, can better afternoon file. >>neil: but do you think that risks looking bad to force a player out of the race or to try to strongly urge a player out of the race? after all, romney, he might have the most delegates, in fact, double the delegates of santorum, but he is still well shy, governor romney, of the delegates he needs. what is the rush? ing couple of things. rick santorum would have to win around 70 percent of all remaining delegates to get close to being the nominee. that is simply not going to
happen. >>neil: or, or, or, he could hope to problem governor romney of clinching the 1,144 he needs by the convention. >>guest: romney is almost serb to get the 1,144. it is not our place to tell people when to get out. >>neil: but you just did. right? >>guest: if you set aside the spin it is clear that practically romney is going to be the nominee. so the question becomes, what's the point of the continuation of the santorum or newt gingrich campaign. if you are interested in not the particulars of the campaign but defeating president obama and uniting the conservative cause and supporting our ultimate and likely nominee, romney, the sooner the better. >>neil: it is interesting and maybe i read too much palace intrigue, but i do notice that the santorum campaigns take the four day break on easter weekend
and, then, he comes out presuming next week ready to fight the battle but my early point as to the polls and whether he wants to risk the embarrassment of losing in his home state so the better part of valor could be i will quit now. is that what the romney campaign is hoping for? >>guest: it is different from that. we expect rick santorum would win person like i said. it would be natural for are to win the home state. if you cannot it is a significant signal about the strength or weakness of your campaign so person should be won
by rick santorum and like we said from romney's standpoint we expect him to win pennsylvania. >>neil: i understand, governor, if he stays in the rates, would he hurt his chances? >>guest: it and premature to speculate about positions but the nominee will want to be interested in unifying the party and do what he can to get the conservative coalition together. >>neil: so i understand that, so if santorum delayed that governor romney would not look favorably in that regard? >>guest: that would be speculative. president obama and hillary clinton had a knock down and they were working colleagues, president and secretary of state. look at the difference in vision at stake. romney, standing for balanced budgets and president obama not. romney for cutting taxes. president obama for raising.
romney for having private sector solutions to health care. president obama, government centered. down the list. romney not spending --. >>neil: we could argue they are not all black and white but you think the attention and focus on the administration will be the focus of the romney campaign that matter who is in the republican race. >>guest: yes. that shift is occurring. that shift is occurring as we speak. >>neil: thank you. >>guest: professor good to be with you another great lecture on your part. >>neil: i wish that were true. now before you wave that wand at my privates you better be smiling at my face a kinder t.s.a.
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of difference, he wants the security secretary to do this. >> they can instruct everyone that works at t.s.a. to smile and say hello, welcome. with a smile. >>neil: hello. please. man. man. >>guest: this is the leader of our united states senator. i will not call him a idiot but it shows you this is our leadership, that is in washington, dc, a smile? no, remember how it all came about? it was after 9/11 and they stuffed this t.s.a. with whoever they could find. security guards and now t.s.a., they stuffed it with all these people and the professionalism is not there. people are there that could determine if a person will be part of a problem, talk to people, and you can have a courteous way. we have all these great men and women coming out of our service from iraq and afghanistan, and
let's train them the you can sues half that amount of people with professional im. >>neil: but most of these t.s.a. agents are decent. >>guest: you want your people to smile? to smile? you need professionals. >>neil: i think they are decent. but the argument that they do their job better and will be more receptive to being "wanded," if they are smiling, it is creepy. >>guest: the point is, when someone is patting you down you can have another inference and you have another set problems. >>neil: that is your mind at work. i am thinking national security. you are obviously thinking benny hill. >>guest: if i pat you done i will grab your junk and smile, i don't think you will be too happy. where are we going? my point is we have to professionalize the t.s.a. with "stop and frisk," police officers can go up to someone
and if you are courteous you believe someone with a smile --. >>neil: what difference whether these guys do it with or without a smile or military guys doing it with or without a smile. >>guest: the courtesy of the military. military people have worked with me and they are courteous. >>neil: do you touch people's junk? i don't care, they will get kicked off. ing you have to change some of them. >>neil: what are you doing? >>guest: they are changing the t.s.a. rules every day something new comes up. >>neil: you think the idea of smiling will make more difference? >>guest: you are into the smiling stuff. i am into the professional em. coming into easter, tore give -- we have to forgive each other. >>neil: you have a fleet of private planes and you have not
seen a t.s.a. agent in years. >>guest: i smile at the t.s.a. agents when i go to them and i say good morning, how are you and whatever they ask me to do i do it. and i smile. and i don't give a chance to get nasty. >>neil: well, we will see how different you are whether it is a military person or not. >>guest: i smile at you. happy easter. >>neil: would you pay $8 a gallon for gas? my name is robin.
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you think they are high now what if i told you they need to be $8 a gallon to make most fuel efficient cars worth the money. and now from the new york city auto show with more on that study. rick: there is a report commissioned by "new york times" that could surprise people who thought they would save a bundle buying a electric or hybrid car. theory serious and lincoln mkz will deliver savings in two years but for other models the extra cost of the technology is so high that it could take decades to save money on new cars with conventional engines. if gas is $5 a gallon it will take 6 1/2 years for the hybrid fusion to pay off. and the nissan leaf got the same score. and the chevrolet volt with a stick are price of $40,000 could
take eight years at $5 a gallon if the driver relies exclusively on battery. according to the volt people the volt has the highest customer satisfaction of any car. >> they are getting emotional fed back and a financial return because they are not going back to the gas station and seeing the difference in how much machine they pay for gas. >> and volt owners usually get 900 miles per tank and some are reporting up to 1,000 miles for a single gallon so they could pay more upfront but usually they only go to the gas station once a month. >>neil: one big exception to the report the prius, could be why sales of that hybrid hit an
all time high. and now the c.e.o., with all of the vehicles, it is pricey. and i guess the argument, then, you save in the long run depending on the vehicle it could be a very long run but is the market, there, if gas prices stay where they are, in other words, do these have -- the prius sales have not robbed camry cars and volt is not robbed cheaper sales at g.m. so is this all a mountain of dust? >>guest: no, in the case of prius people are buying for a number of different reasons. some people are buying for environmental reasons. some for economical reasons. some because they love the technology in the car. last month, almost 29,000 sales in theory serious family it was the biggest month we have had and on top of that --. >>neil: that is when the gas prices rocketed. >>guest: there was a connection hike grades were 19 percent of sales but back a year ago hybrids in our case were
still almost 15 percent of sales. so there has been a bump. but, hybrids in our case are still a very popular product. >>neil: here is where i draw the line between hybrids and others. if they get too wild, plug plug in, that is where they get diminishing return, they are not antihybrid but anticonfusing. the jury could be out longer term on the prius what i am asking, i guess, is the appetite really there in total volume for all of the vehicles if we just keep gas where it is now? >>guest: it could be if you keep gas where it is now but the long term is that fuel prices will go up over time. when we look at regulation coming forward to average 50 miles plus a gallon assuming we will see higher fuel prices. the average person realizes that. >>neil: that is the cut off to
say, well i want to save on gas but i don't want to spend a lot on a car. what is the cut off? >>guest: the interesting thing it is not necessarily the price of gas but the rate of change in the price of gas. if you look at 2008 when we had a rapid run up in the price we saw people shift from anything that was v8 or v6 to four cylinder cars and today with high provisions we do not see that take place. an example the biggest growth in sales so far this career are mid-sized passenger cars. it is not compact cars. so people are --. >>neil: but the mid-sized passenger cars of all makers, are, are, are, are getting great fuel mileage. >>guest: they are. people are coming in today and trading out of compact cars they bought he and four years ago during high fuel prices and moving back to larger vehicles that get great mileage.
the industry has done a great job in just the ice engines getting better mileage. >>neil: what do people tell you who buy the cars, what is the compelling selling point? what gets them in to the vehicle? >>guest: it varies. in most cases they see they are more economical overtime to operate and they pay less for operating. some do it for less dependence on foreign oil. and some for environmental reasons. >>neil: but all the people buying the vehicles, from the bring obvious to the volt, a lot of them, these are toys of the well-to-do. >>guest: not necessarily. i cannot tell you about the volt because i did not know their demographics but in the case of prius we have told a million. they are not all just to people
with wealth. there are a lot of middle income people bying the car and they are coming back into the market now. >>neil: what does a loaded, loaded prius? >>guest: about $38,000. for natural gas it is probably $32,000. the average transaction is about $26,000. if you look --. >>neil: the average camry? >>guest: about $24,000 so a couple of thousand dollars. >>neil: so to make up going from the camry to theory serious i would have to own it for a couple more years. >>guest: a couple. couple. the acknowledge car on the -- the average car on the road today is 11 years old and the average person keeps their car five or six years but i don't think moment most people sit down and calculate pay back on car. they look what their budget is, how were they can afford on a monthly basis and part the monthly basis is cost of operating a car. that factors into their decision. >>neil: your big money makers
across the board, yours, g.m., ford, they are not --. >>guest: we make money across the board on most. >>neil: but it is not as if the camry is going away? >>guest: no we told 42,000 last month and it will continue to be the top seller. >>neil: always good to hear from you. reap a lie often touch folks will believe it. larry says when the president says it he needs to be called out. larry ♪
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(inaudible). >> we need to take care of that and our chairwoman on the oversight committee called with a couple of questions about the proposed pay increases for executives you mentioned. >>neil: that was one of the aspects of the gsa las vegas trip that was ripped by congressman issa and his committee released and now the gsa is acknowledging that it was a big mistake to do the video an example of the complete lack of judgment exhibited occurring the 2010 conference and our continues is appalled by this indefensible behavior and taking every step possible to ensure that nothing like this ever happens again better than $800,000 taxpayer dollars spent on this.
and it seemed in good fun back then but it will be the source of an investigation right new. the nonpartisan group calling democrats take on paul ryan's budget the lie of of the year 2011. >> this plan ended medicare as we know it. >> it ends medicare as we know it. >> ends medicare as we know it. >> we have to end medicare as we know it we according to this vision. >>neil: why is the president repeating it, again, this year? >> bad idea. it will end medicare as we know it. >>neil: you can count on larry sabato but leaving aside the fact that the president's own health care law all but ends medicare as we know it, but this keeps coming up, even when those who argue the point enjoy that it is not so. but, why does it bother you
particularly, now? >>guest: well, first of all, when you hear a phrase leak -- that repeated over and over and over again not by just the president but by other democratic officeholders you know it is scored very highly in the polling they have done and the focus group testing. it is easy to remember that, end medicare as we know it and it frightens those who depend on medicare or think they will need medicare or have used it. the reason it is used again and again is because it works. like negative advertising. >>neil: but it and wrong. it is wrong. it is wrong. it is not true. so it must be truth in advertising law, right? >>guest: not that i know of in politics. actually, under the first amendment there is no truth in advertising allied to politics. it is left up to citizens to make those judgments.
but this is called the medi scare tactic used at least since 1986. that midterm election it was decided, the senate, going democratic on the basis of mede scare, the same tactic on medicare and social security used changing the senate from republican control to democratic control. it has happen add lot. >>neil: it has resonated in places like florida. arizona. in new mexico. but morally florida with elderly and folks who would hear this and be scared. obviously it does have an effect. right? >>guest: it has a big effect. you are correct. if you are going to look for the biggest effect you look to the states where the population is older. iowa is another good example. west virginia. there are places throughout the country are for one reason or another demographically you have
a very sizable elderly population. they depend on medicare they depend on social security, and they are frightened about these particular issues. >>neil: we know medicare as we know it, the way it is going, whether you are on the right or left, cannot continue. so, that is to hurt either party from saying, look, we can differ on fixing it but if we don't fix it, it is history. >>guest: you are a party mover pointing out the fiscal realities that we would prefer --. >>neil: i don't want to sound like jim any stewart but they are tuned up enough to say we understand the map help us make the fact favorable, and, yet, we don't hear that from either party. >>guest: you cannot have a
rational discussion about anything in politics anymore. >>neil: thank you, larry. tires of putting -- paying bill for folks who should not be here, for illegals who are here? i look at her, and i just want to give her everything. . i did not want to think about that. relax, relax, relax. look at me, look at me.
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>>neil: just send us a bill, a texas lawmaker is proposing that with estimated 1.6 million illegal immigrants from mexico in his state he says mexico owes the state for all the services they are providing their citizens. $6 billion. he says. at the least. just for last year. he sent this in a letter to mexico's president calderon and joins us now and we contacted the mexican president's office but no response so far. but hope springs eternal. you never know. representative, good to have you. you have gotten no response to
this? a lot of foes say, you know, you are, i guess, wasting time here. but what do you say? >>guest: well, we need to start a dialogue with the folks that are the source point for illegal immigrants not only in texas but all border states. we have tried for three decades to try to get cost recovery for local school directs and folks that are given health care in texas. they have not given us any funding to let's start the dialogue. it is critical if we are going to secure the border it is imperative that the folks this mexico are part of the equation. no country not history of the world has ever been able to secure their own border so we need to start a dialogue and do cost recovery. in fact, texas and a number of the states are welfare states for the folks in mexico and they are rich if resources, the 12th
launch of the economy in the world, second largest importer into the united states, so --. >>neil: representative you are right as far as what they have but they have blown the assets or wasted the money or corruption, they don't have the money so you have a country that is literally imploding depending on your point of view so they will not pay up. and, the only saving grace has been things, when the slow down was gripping this country, fewer mexicans were coming here because as bad as things were there they are not a hell of a lot more promising here but now as things pick up it is getting to be a problem again. >>guest: it is. 1.6 million and it is going to grow. the illegal immigrants in this state, and it is critical that if we do not get a guest worker program we will have they do something from the state stand point to try to get some cost recovery, going to mexico is one
of the strategies. this is a lot funding that goes into mexico at federal level forage station and infrastructure and those things but the host state like texas and california, are losing $6 billion to $8 billion a year in providing the services and we will have to get relief so we have a lot of common interests with mexico, and they do have a lot of resources that are available and if we introduced oil companies back into the none part of mexico or deep offshore drilling there are resources there. >>neil: well that is not a bad idea, get them in there and raise the money that way. thank you, representative. >>neil: the million dollar question, rent or buy? today we think we have the today we think we have the answer. ♪ why do you whisper, green grass? ♪
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>>neil: with home prices near rock bottom you would think houses would be selling like crazy. right? as our chief washington correspondent found out in this economy it is not quite that easy. james, what is happening? >>guest: the trend line is clear: buying a home in most major american cities is now more affordable long material -- long term than renting but the question is do enough americans feel they have the job security they need to take that plunge and move the nation wide homeownership back up. leading websites are trumpeting the most favorable price to rent ratio in memory, in major metro areas with rent prices increasing in nearly 70 percent of cities, while home prices
increased with just .1 percent frequency. and the "wall street journal" reported that from january 2011 to january of this year the rents rose 3 percent and home prices fell in that same time period by nearly 5 percent. >> credit is harder to get so although it could be cheaper to buy than rent many are not in a position to ask the question of whether to buy or rent. >> one couple that found themselves in that position and they get a deal to purchase a home in northern virginia after five years of renting where they said they felt leak they were losing money. >> we have both been working for the government which we are very appreciative of because of the concerns of having job taken away, spontaneously without warning, that does not apply as much to us. >> americans are aair of the
favorable conditions for buying, with the national housing survey by fannie mae finding a large majority of americans saying they think interest rates will stay the same or go down in the next 12 months but in the same survey, 89 percent of americans say it was either not very likely or not at all likely they will take the plunge in the next year and boy a home. >>neil: but if they lock at assets as increasing in value, if they have little hope it will, why bother? >>guest: and people are just saying, my home is just a place to live, note just an investment. >>neil: there you go, a true human view of this. thank you, james. three pages, single spaced, by thursday. it is thursday. did attorney scene holder complete his assignment?
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>> neil: so i am thinking to myself, self, did eric holder pull an all-nighter? word the attorney general did get his assignment done on time. quick assignment and painstakingly detailed one. try circuit judges demanding to know how they came to the conclusion they have no right to interfere in decision of duly elected congress. had to be three pages, single spaces. don't know about the margins. and we have a guest who read it. what is in it? >> a lot on top. a lot on top with the margins. big signature on the bottom. but what mr. holder did restate what the government's position was in the constitutional discussion. before the supreme court last week and the week before. he put back in a three-page letter and he claims that the president's comments on monday
about if the court overturns the law, it would be unprecedented. he claims that is support for that. he just reiterated -- >> neil: trying to -- [ inaudible ] >> of course. >> neil: what is going on with the president? >> i'm a bit concerned that the president is coming out saying that. we are in a democracy. based on the constitution. we all know that the supreme court is there to completely review laws of the federal nature. based on constitutionality. that's what they are there. they are elected officials. they are there to review what elected officials do in terms of federal law. this is very clear. so for the president to come out and say it was unprecedented, not unpreceden unprecedented. this is what supreme court does. >> neil: i think the president not word that it looks like his supreme court,
with healthcare is going to go down so he is trying to prepare us for. that argue it would be mistake. big mistake to do that. that judicial activism isn't parented, though running for president, he was okay with the judicial activism. and certainly legislatively he was fine with just plain old activism. that is what i think is going on. >> interesting position. if that is the position, someone had to give him a heads up. >> neil: i'm just telling you what i'm reading. >> and already knows what will be -- >> neil: he will come back if it's slapped down and say overzealous judges shot it down. argue overzealous conservative judges shot it down. >> he is going to have to argue that. we have seen from the arguments, i was prif i have to some of the argument -- privy to some arguments. that justices were progressive whether or not the government could support someone being
forced to buy something in this country. where is the constitutionality -- >> neil: why does the president keep embarrassing the will of the house in the "state of the union," all the justices. and then i mean there is a pat attorney this. >> there is a pattern. that is my concern over this. he knows very well that justices on the supreme court are going to review everything and make the best determination they can. they are nonpartisan by nature. they are not elected. whether or not they show some favoritism to a party or not is really not what they are there. we know. this they are going to make decisions based on the constitution. i think at best he just respects that and continues. he can have a position on his law. >> neil: just shut up. >> to attack the justices is not a good choice for him. >> neil: thank you. good to see you. we have more on what the white